In This Article:
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Net Sales: $660.3 million, a 3.5% increase from $638.1 million in the same period last year.
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Adjusted EBITDA: $67.1 million, down from $79.4 million in the prior year.
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Adjusted EBITDA Margin: 10.2%, a decline of 220 basis points from 12.4% last year.
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Net Income: $13.3 million, compared to $37.5 million in the previous year.
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Gross Profit: $202.2 million, a decrease from $204.7 million last year.
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Gross Profit Margin: 30.6%, down from 32.1% in the prior year.
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Free Cash Flow: Negative $41.2 million, compared to positive $11.7 million last year.
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SG&A Expenses: $154 million, up from $137.8 million in the previous year.
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Diluted Earnings Per Share: $0.10, down from $0.29 last year.
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Adjusted Diluted Earnings Per Share: $0.18, compared to $0.31 in the prior year.
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Net Debt: $944.7 million, with a net debt to adjusted EBITDA leverage ratio of 2.7 times.
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Cash on Hand: $113.5 million at the end of the quarter.
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Capital Expenditures: $9.8 million, up from $7 million last year.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MasterBrand Inc (NYSE:MBC) reported a 3% increase in net sales for the first quarter of 2025, driven by a 10% growth from the Supreme acquisition and 2% growth from net ASP increases.
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Builder direct sales increased by over 4% compared to the prior year, benefiting from new business wins and steady new housing completions.
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The company is progressing with its Supreme integration and facility consolidations, which are expected to improve cost efficiency in the future.
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MasterBrand Inc (NYSE:MBC) is implementing strategic initiatives such as Align to Grow, Lead through Lean, and Tech Enabled to position the company for future growth.
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The company has a strong manufacturing footprint in the United States, which provides some insulation from tariff impacts compared to competitors relying on imports.
Negative Points
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Adjusted EBITDA margin declined by 220 basis points to 10.2% due to lower volumes and fixed cost leverage issues.
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The company experienced a negative free cash flow of $41 million in the first quarter, compared to a positive $12 million in the same period last year.
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Market volume declines were observed across all channels and markets, with a particularly soft demand in the repair and remodel market.
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Tariffs and economic uncertainty have negatively impacted consumer confidence, leading to weaker demand for large ticket purchases.
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The company anticipates continued pressure on margins in the second quarter of 2025 due to ongoing manufacturing network realignment and tariff impacts.